§ Ms PerhamTo ask the Secretary of State for the Environment, Transport and the Regions if he will estimate the costs to public funds of the subsidies and other financial incentives provided to the Canary Wharf development and associated Enterprise Zone since its establishment. [78302]
§ Mr. MealeInformation as requested on an individual development within an Enterprise Zone is not readily available.
There are two main tax incentives offered to businesses in Enterprise Zones:
- (a) 100 per cent. allowances for corporation and income tax purposes for capital expenditure on industrial and commercial buildings (including hotels); and
- (b) exemption from local authority business rates for industrial and commercial property, for the duration of Enterprise Zones status.
According to a Report by Cambridge Policy Consultants on 'An Evaluation of the Isle of Dogs Enterprise Zone', which was commissioned by the then Department of the Environment, estimates of the public costs associated with the Isle of Dogs Enterprise Zone as a whole, (over the end of the ten year life of the Zone), which would include the Canary Wharf development, are as follows:
£ million (1997–98 prices) Cost to the Exchequer of the Capital Allowances 736.0 Rate Relief 66.8